Situation
The SEC alleged that a real estate investment fund, which had raised about $170 million, operated as a real-estate-debenture Ponzi scheme. Our client, an executive of the fund, was swept into the enforcement action and faced the prospect of protracted litigation with the Commission over his role.
Approach
Adam Fels worked the matter alongside the SEC enforcement team's standard pressure, focusing on isolating the client's position within a large alleged fraud and driving toward a resolution rather than open-ended exposure.
Result
The matter was resolved as to the client in June 2022, closing out the SEC's claims against him.